Best Cannabis Stocks In May 2022
Marijuana stocks have seen some of the steepest declines in value in 2022. After establishing new lows in May, could the best cannabis stocks to buy have future upside? Many analysts currently believe the overall market could continue to decline further. But the cannabis sector could have a potential catalyst in the coming months. For one Senate Majority Leader Chuck Schumer has stated he would be formally introducing the Cannabis Administration and Opportunity Act before the Senate’s August recess. This could help top pot stocks find a bottom this year and begin moving higher.
In May many leading cannabis companies reported first quarter earnings that showed strong revenue growth so far this year. But many of these companies also lowered their 2022 guidance as inflation and a possible recession lower expectations. One area that has been hit hard in the market this year is ancillary cannabis companies. Ancillary cannabis companies are those companies that support the cannabis industry without touching the actual plant. In the past few years, this area of the cannabis market has been growing rapidly alongside the industry.
Ancillary Cannabis Stocks For 2022
Ancillary cannabis companies provide many different services to the industry from growing equipment and lighting, real estate investing, and online services. With the cannabis industry forecast to more than double in the next five years, many of these companies are positioned for significant growth. As we head into June let’s look at 3 top ancillary marijuana stocks for your list next month.
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Best Ancillary Marijuana Stocks To Watch Before June
- Leafly Holdings, Inc. (NASDAQ: LFLY)
- WM Technology, Inc. (NASDAQ: MAPS)
- NewLake Capital Partners, Inc. (OTC: NLCP)
Leafly Holdings, Inc.
In February, Leafly Holdings Inc., a popular online cannabis discovery marketplace and consumer resource announced that its common stock, LFLY, has begun trading on the NASDAQ. Leafly is the most trustworthy website for finding and buying cannabis products from certified legal suppliers all around the world. Leafly is used by over 125 million people each year to learn about cannabis and conduct online orders with local businesses. The company’s extensive resources help clients make informed purchase decisions and empower cannabis businesses to gain and retain loyal customers through advertising and technology services. In May the company launched an online cannabis delivery service in California which allows consumers to order cannabis deliveries directly from the site.
Leafly announced its first-quarter 2022 results on May 4th, with sales growing 40% year over year to $57.5 million. In addition, the number of monthly active users climbed by 52% year over year to 16.4 million. The corporation made $53.7 million in gross profit, reflecting a margin of 93 percent. Furthermore, the company lost $31.2 million, compared to a net income of $7.7 million in the prior-year quarter. The company released a cannabis employment analysis on February 23rd, revealing that the legal cannabis sector is the most prolific job generator in the United States. According to the report, the cannabis business will generate $25 billion in sales and over 100,000 new employees through 2021.
LFLY Stock Performance
LFLY stock closed on May 24th at $9.18 down 11.65% in the past five trading days. Currently, the stock has a range of $5.27-$11.58 and is down 8.11% year to date. According to analysts at CNN Business LFLY stock has a median price target of $12 per share. In this case, this would represent an upside of 30.58% from its last trading price of 9.18.
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WM Technology, Inc.
Weedmaps is a user and business directory for cannabis, as well as an online marketplace. It is a subsidiary of WM Technology, Inc. The WM Business cloud-based SaaS solutions are often used as an operating system by cannabis shops. WM Business’s products, in general, assist in adhering to the cannabis industry’s complicated and ever-changing standards. Weedmaps announced a multi-year arrangement with Kevin Durant’s Thirty-Five Ventures as well as a sponsorship deal with Boardroom earlier this year. The company acquired Sprout, a well-known cannabis CRM, and marketing platform, in 2021.
Weedmaps presently has over 18,000 business listings in the United States and an estimated 13.9 million monthly active users. The monthly average income per paying client has fallen to $3789. On May 4th, Weedmaps released its first-quarter 2022 statistics, with sales up 40% year over year to $57.5 million. Furthermore, the number of monthly active users increased by 52% year over year to 16.4 million. The company produced $53.7 million in gross profit, representing a 93 percent profit margin. Importantly, the company lost $31.2 million in the quarter, compared to a $7.7 million profit the year before.
MAPS Stock Performance
MAPS stock closed at $5.41 on May 24th down 8.31% in the past month. Currently, the stock has a 52-week price range of $4.22- $22.24 and is down 9.53% year to date. According to analysts at Tip Ranks MAPS stock has a 12-month average price target of $9.08 per share. In essence, this would represent an upside of 67.84% from its last trading price of $5.41.
NewLake Capital Partners, Inc.
NewLake Capital Partners is a leading real estate lender to cannabis companies with a state license. It’s a triple-net lease REIT that invests in industrial and retail buildings via sale-leasebacks, third-party purchases, and build-to-suit projects. It was established in the year 2019. Its tenants include some of the most well-known names in the state-licensed cannabis industry in the United States, and it is a trustworthy real estate partner. In May the company released its first quarter 2022 results with revenue totaling $10.2 million up 130% year over year. In addition, the first-quarter 2022 net income attributable to common stockholders totaled $5 million.
On March 15, 2022, the Company declared a $0.33 per share cash dividend for the first quarter of 2022, equating to a $1.32 yearly dividend. NewLake Capital today has more than $325 million in assets, $110 million in cash, and a portfolio of 28 buildings spread across ten states. In total, the group has 17 dispensaries and ten growing facilities. Curaleaf Holdings, Inc. (OTC: CURLF), Cresco Labs Inc. (CRLBF), Trulieve Cannabis Corp. (OTC: TCNNF), and Columbia Care Inc. (OTC: CCHWF) are among the tenants of NewLake Capital.
NLCP Stock Performance
NLCP stock closed at $18.91 on May 24th down 17.06% in the past month. Currently, the stock has a price range of $18.00-$35.50 and is down 34.07% year to date. According to analysts at Market NCLP has a consensus price target of $44 per share. This would represent an increase of 132.7% from its last trading price of $18.91.
Finding The Best Investments In Cannabis Right Now
As the cannabis sector continues to trend at these lower levels these ancillary cannabis stocks could be good options for investing in the cannabis market. Before making an investment it’s important to do your own research on these companies and investigate their financials and press release. From current trading levels, these ancillary pot stocks could have potential gains for short-term and long-term investors. As we begin June these could be the best ancillary marijuana stocks for your watchlist right now.
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